The employment cost index for private industry workers rose 0.8% last quarter. The increase was up from the 0.6% 2Q gain and equaled Consensus expectations.Year to year, the ECI's gain of 3.0% was the slowest since early 1999.

Benefit costs increased 1.3%, up from the slow 0.8% 2Q gain and it was the quickest this year. Benefit costs in service occupations rose 1.1% (2.8% y/y) and benefit costs in manufacturing rose 1.6% (5.5% y/y).

The y/y gain in the cost of health benefits rose to 6.7% but that remained down from a 7.3% increase last year and a 10.5% gain in 2003.

Wage and salary growth was stable at 0.6% for the third straight quarter. Wages account for roughly 70% of the compensation index.

It's Who You Are and What You Do: Explaining the IT Industry Wage Premium from the Federal Reserve Bank of Atlanta is available here.